SCM 411 exam 1 Rodrigues 2023 with verified questions and answers

The supply chain features a constant flow of.... information, products, and funds SC surplus involves what 2 parts? Customer value and supply chain cost Customer value is... the sum of the supply chain surplus and supply chain cost. The objective of every supply chain is to... maximize the overall value generated Walmart's SC features clusters of stores around distribution centers, which facilitates.. Frequent but inexpensive replenishment at the stores the decision phases in a supply chain include... supply chain operation A company would decide whether to outsource or perform a sc function in house during the... strategy and design phase a decision made about which markets will be serviced by which locations falls in the sc _______ phase Planning the time horizon of the operations phase is typically weekly or daily The push/ pull view of a SC holds that... The processes in a SC are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders customer order arrival refers to.. the point in time when the customer has access to choices and makes a decision regarding a purchase the objective of cutsomer order entry is to.. ensure orders are quickly and accurately entered and communicated to other affected SC processes objective of customer order fulfillment is to... get the correct orders to customers by the promised due date at the lowest possible cost. cycle view of sc is useful when considering operational decisions because.. it specifies the roles and responsibilities of each member of the SC which of the following statements about pull processes is accurate? They may also be referred to as reactive process a company's competitive strategy... defines the set of customer needs a company seeks to satisfy through its products and services the value that a potential customers place on product costs and delivery time determines a company's.... competitive strategy a companys marketing and sales strategy specifies.. specified how the market will be segmented and how the product will be positioned, priced, and promoted which of the following determines the nature of procurement of raw materials, transportation of materials to and from company, manufacture the product or operation to provide service, and distribution of product to the customer along with follow up service SC strategy The uncertainty that exists due to the portion of demand that the supply chain is required to meet is the implied demand and uncertainty which of the following customer needs will cause implied uncertainty of demand to increase? lead time increases SC responsiveness includes the ability to do which of the following handle supply uncertainty the preferable sc strategy for a firm that sells multiple products and serves customer segments with very different needs is to... tailor the SC to best meet needs of each products demand which of the following would be a demand in supply characteristic towards the beginning stages of product life cycle? Product availability is crucial to capturing the market efficient supply chains.... maximize performance at a minimum cost. an aggressive investment in customer analytics represents the use of which lever to reduce SC uncertainty? information The boeing 747 was scheduled to take off for the airport for Boston in just 2 days. Only 4 seats are booked. Holiday getaway seemed to be money losing situation. Bob lowered the airfare 90% and hoped to make up the loss in logistical revenue by doubling price of drinks and entertainment during the trip. Bob has handled uncertainly with which tool? Price the functions in stages that devise an integrated strategy with an aligned objective are referred to as? scope of strategic fit the key weakness of the ____ view is that different functions within a firm may have conflicting objectives Intraoperation scope Scope of strategic fit refers to both the... function within the firm and stages across the supply chain which of the following would result in a lower ROA for a company if all other entries and their selected financial data were held constant? a reduction in earnings before interest and taxes which of the following would result in the improve of cash to cash (C2C) cycle for a company if all other entries were held constant an increase in weeks payable the places in the SC network where product is stored assembled and fabricated are known as.. facilities which component of the SC decision framework would be established first? competitive strategy which component of the SC making framework would be used to reach the performance level dictated by the SC strategy SC structure which of the following is a characteristic of a facility with excess capacity will likely be more efficient per unit of product it produces than one with a lot of unused capacity The following warehouse methodology is one in which goods are not actually warehoused in a facility. Instead trucks from suppliers, each carrying a different type of product, delivered goods to a facility. There the inventory is broken into smaller lots and quickly loaded onto store-bound trucks that carry a variety of products. Some from each of supplier trucks Cross-docking the average amount of inventory used to satisfy demand between receipt of supplier shipments is referred to as... cycle inventory the inventory held in case demand exceeds expectation in order to account for uncertainty is called. safety inventory Although faster transportation is more expensive, a firm receives which benefit as a result of the faster transportation? lower inventories Blue Nile is an online retailer of diamonds that has used responsive transportation to ship diamonds to customers in the United States, Canada, and several countries in Europe and Asia. Which is the mode of transportation used with this strategy? air When all the different stages of a supply chain work toward the objective of maximizing total supply chain profitability, rather than each stage devoting itself to its own profitability without considering total supply chain profit, it is known as.. SC coordination the art and science of making projections about what future demand and conditions will be is called.. forecasting Transforming forecasts into plans of activity to satisfy the projected demand is known as aggregate planning _________ measures average time between when an order is placed and when it arrives Supply lead time Distribution is a key driver of the overall profitability of a firm because.. it directly impacts both the supply chain costs and the customer experience The probability of having a product in stock when a customer order arrives is... product availability As the number of facilities in a supply chain increases.. the inventory and resulting inventory costs also increase As the response time desired by the customer decreases, the required number of facilities in the distribution network.. increases Total logistics costs for a SC network are a sum of inventory, transportation, and facility costs Which distribution network is also referred to as drop-shipping with product delivered directly from manufacturer to the customer location? manufacturer storage with direct shipping Which of the following would be a disadvantage of manufacturer storage with direct shipping? Response times tend to be large because the order has to be transmitted from the retailer to the manufacturer and shipping distances are on average longer from the manufacturers centralized site Which distribution network design is similar to pure drop-shipping, except that pieces of the order coming from different locations are combined so that the customer gets a single delivery? manufacturer storage with direct shipping and in-transit merge Which distribution design network is being used when inventory is not held by manufacturers at the factories, but is held by distributors/retailers in intermediate warehouses and package carriers are used to transport products from the intermediate location to the final customer? Distributor storage with last mile delivery Which of the following is an advantage of manufacturer/distributor storage with customer pickup? Transportation cost is lower than the use of package carriers, especially if using an existing delivery network Which of the following is a disadvantage of retail storage with customer pickup? inventory cost is higher than all other options In general, traditional brick and mortar retail sales outperform online sales along the dimension of... product returns Online sales increase ________ when compared to the performance of traditional brick and mortar retail stores outbound transportation costs In order the reap the greatest return from the online channel for physical goods, firms should: integrate it with their existing supply chain networks SC network design decisions include... both the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility Facility location decisions have a long term impact on a supply chain's performance because.. it is very expensive to shut down a facility or move it to a different location Allocating too little capacity results in poor responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility. The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so that.. the allocation can be changed as market conditions or plant capacities change Network design decisions have a significant impact on performance because they.. set constraints within which inventory, transportation, and information can be used to either decrease SC cost or increase responsiveness firms focusing on cost leadership tend to find the lowest cost location for their manufacturing facilities. Firms focusing on responsiveness tend to locate facilities close to the market they serve. If facilities have lower fixed costs.. many local facilities are preferred because this helps lower transportation costs. If the production technology is very inflexible and product requirements vary from one country to another, a firm has to set up.. local facilities to serve the market in each country _____ costs increase as the number of facilities in a SC increases Inventory Capital, growth strategy, existing networks and global competition mostly affect which of the four Global Network Design Decisions? Phase 1- SC strategy when faced with a network design decision, the goal of a manager is to design a network that maximizes the firm's profits while satisfying customer needs in terms of demand and responsiveness the objective of the second phase of network design is to.. identify regions where facilities will be located, their potential roles, and their approximate capacity the objective of the 3rd phase of network design is to.. select a set of desirable sites within each region where facilities are to be located **????** "Subset of desirable location possibilities" *** The opportunities from globalization are often accompanied by.. significant additional risk Decisions made during the supply chain design phase regarding significant investments in the supply chain such as the number and size of plants to build, number of trucks to purchase or lease, and whether to build or lease warehouse space... cannot be altered in the short term A global supply chain with offshoring.. increases the length of the product flow and increases the duration of the information flow A global supply chain with offshoring would tend to see which of these performance dimensions decrease? SC visibility A global supply chain with offshoring would tend to see which of these performance dimensions increase? Minimum order quantity Offshoring to low-cost countries is most attractive for products with... large production volume The ability to produce a variety of products within a short period of time is called.. mixed flexibility As flexibility is increased... the marginal benefit derived from the increased flexibility decreases When supply disruptions occur.. smaller chains outperform a network with one long chain The present value of a future stream of cash flows is what that the stream... is worth in today's dollars A negative net present value (NPV) for an option indicates that the option will.. lose money for the supply chain Flexibility should be valued by taking into account uncertainty in demand and economic factors. In general, flexibility will tend to increase in value with an increase in uncertainty The degree of demand and price uncertainty has... a significant influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry. If price and demand do vary over time in a global network... flexible production capacity can be reconfigured to maximize profits in the new environment Simulation methods are very good at evaluating decisions when... there are different forms of uncertainty The process by which a company determines levels of capacity, production, subcontracting, inventory, stock outs, and even pricing over a specified time is... aggregate planning The goal of aggregate planning is to.. satisfy demand in a way that maximizes profit Aggregate planning, to be effective, requires inputs from.. throughout the SC The operational parameter concerned with the number of units completed per unit time (such as week or per month) is.. production rate Aggregate planning is concerned with determining.. the production level, inventory level, and capacity for each period The length of the planning horizon in aggregate planning is usually between.. 3 and 18 months The fundamental trade-offs available to an aggregate planner are between capacity, inventory, and backlog costs The strategy where the production rate is synchronized with the demand rate by varying machine capacity or hiring and laying off employees as the demand rate varies is the chase strategy The strategy where the workforce (capacity) is kept stable but the number of hours worked is varied over time in an effort to synchronize production with demand is the flexible strategy The strategy where a stable machine capacity and workforce are maintained with a constant output rate, with inventory levels fluctuating over time, is the level strategy A highly effective tool for a company to use when it tries to maximize profits while being subjected to a series of constraints is linear programming What is the name of the plan that breaks apart the aggregate plan into distinct product families rough master production schedule When formulating aggregate plans forecast errors must be considered The aggregate plan needs to.. have some flexibility built into it because forecasts are always wrong The success of advanced planning systems is highly dependent on data accuracy Predictable variability is... change in demand that can be forecasted The advantage of maintaining enough manufacturing capacity to meet demand in any period is.. very low inventory costs because no inventory needs to be carried from period to period The advantage of building up inventory during the off season to meet demand during peak seasons and keep production stable year round is.. in the fact that a firm could get by with a smaller, less expensive factory The advantage of offering a price promotion during periods of low demand to shift some of the demand into a slow period is.. a demand pattern that is less expensive to supply With supply and demand management decisions being made independently.. it is increasingly difficult to coordinate the supply chain, thereby decreasing profit A firm can vary supply of product by controlling..*** capacity In this approach to managing capacity, a firm uses flexible work hours by the workforce to manage capacity to better meet demand Time flexibility from workforce In this approach to managing capacity, a firm purchases peak production so that internal production remains level and can be done cheaply use of subcontracting A firm can vary supply of product by controlling..*** production, capacity, and inventory Which of the following is an approach that firms can use when managing inventory to meet predictable demand variability? Using common components across multiple products When most of the products a firm produces have the same peak demand season, in order to meet predictable variability with inventory, it must.. build inventory of high demand or predictable demand products The promotion and pricing decisions made by marketing and sales typically have the objective of.. maximizing revenue Pricing decisions based only on revenue considerations often result in.. a decrease in overall profitability In general, as the fraction of increased demand coming from forward buying grows, offering the promotion during the peak demand period becomes.. less attractive Which factor favors promotion during low-demand periods? High forward buying The situation in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers is known as: The bullwhip effect The lack of coordination within a supply chain will result in an increase in: Replenishment lead time Situations where incentives offered to different stages or participants in a supply chain lead to actions that increase variability and reduce total supply chain profits are referred to as: Incentive obstacles The impact of the lack of coordination on supply chain processes decreases for the following measure Level of product availability Improperly structured sales force incentives Tend to create spikes in customer orders Situations where demand information is distorted as it moves between different stages of the supply chain, leading to increased variability in orders within the supply chain are referred to as: Information processing obstacles The fact that each stage in a supply chain forecasts demand based on the stream of orders received from the downstream stage results in: A magnification of fluctuations in demand as we move up the supply chain from the retailer to the manufacturer When a firm places orders in lot sizes that are much larger than the lot sizes in which demand arises: Variability of orders is magnified up from the supply chain Managers can improve coordination within the supply chain by: Aligning goals and incentives Coordination requires every stage of the supply chain to focus on: Supply chain surplus One appropriate measure to reduce replenishment lead times is to: Order electronically Which method would serve to reduce the information distortion in a supply chain consisting of a fabricator, manufacturer, supplier, and a retailer? Make the manufacturer responsible for all decisions regarding product inventories at the retailer Vendor managed inventory and continuous replenishment systems both serve to: Minimize information distortion In a continuous replenishment program, the wholesaler or manufacturer replenishes a retailer regularly based on: The POS data of the retailer Successful collaborative planning, forecasting and replenishment (CPFR) initiative must be built on a foundation of: Data synchronization and established standards for exchanging information